Bangladesh Power Development Board (BPDB) will set up a 400-megawatt (MW) gas-based power plant at Bibiyana at a cost of over Tk2,500 crore to be financed from its own source for the first time.
Since its inception, the board has so far set up all the power plants with public fund or foreign loan to boost power generation capacity.
It has already submitted the project proposal to set up the plant at natural gas-rich Bibiyana in Habiganj district, officials said.
A Spanish contractor has been selected to build the plant. “The bidding price offered by the contractor will soon be sent to the Cabinet Committee on Government Purchase for approval. Then, an agreement will be signed,” said a source in the Economic Relations Division (ERD).
“The board for the first time has decided to spend from its own coffer to set up the plant," said an official.
Earlier, BPDB started working on another 400MW plant at Bibiyana by borrowing funds from the Export Credit Agency. It selected the Japanese firm Marubini Corporation to set up the plant.
Summit Power – a private power generation company – is also installing another 450MW combined cycle power plant at Bibiyana. The electricity from this plant will be purchased by the BPDB, the largest power producer in the country.
Currently, the BPDB generates 4,440MW of power from its plants. The rest of a total of 10,390MW is being produced by different government-owned, private and joint-venture companies.
According to the Power Division officials, nearly 38% of Bangladesh’s population is still out of the electricity coverage.
A BPDB official said they invited bids from the international companies in February last and hired a Spanish contractor for constructing the 400MW power plant. “After completing all necessary formalities, we will sign a contract with the selected bidder.”
He said the gas-based power plant installation might be completed by June 2017.
Another official said they have already sent the project proposal to the Finance Division, Planning Commission, Economic Relations Division, and Implementation, Monitoring and Evaluation Division and other relevant government agencies seeking their opinion.